A new year. At the beginning of the year we all have ideas of what we want to accomplish for the year. It's a fresh start and gives us a moment to think about ourselves. What do we want? Where do we want to be? How can we reinvent ourselves? How can we improve our situation? There's even this faint, almost, subconscious feeling or desire to do something big. Most of the time it's just an urge with no attachment to an idea, plan or structure. That's where most of us stop. Take the most popular new year's resolution: losing weight. We come into the start of the year with visions of being the next top model but within weeks we fail or quit, Usually, it's because it was just an urge. A desire with no direction.
With that being said. Let's try something new this year. Let's talk about another popular new year's resolution: to make more money. How can we do that? We work our job and save where we can. What do the wealthy do? They create businesses/or have high W2 income, invest into stocks/their retirement and BUY REAL ESTATE.
Real estate does a lot of things that other assets can't. You can rent it, sell it, finance it or just buy it in cash and live there. It's one asset that is a necessity. We need shelter to survive. The great part about real estate is that it serves many purposes on our journey to wealth.
Let's keep it simple. You can rent a home (beach house, lake house, apartment, standard single family home). You can rent it for the year, short term standard (1-6 months) or short term vacation rentals (by the day or week). You could even buy a home with the plan to use it as a vacation rental and then use it yourself as you please. This is a great way to get that vacation home you've always wanted and you won't have to pay the mortgage (your tenants/customers will). This is called buy and hold.
For today I'm going to focus on the option above. This option consistently builds wealth over time. You get rental income, appreciation of the property's value over time, tax deductions and a great home to vacation in. On top of that if you don't want to manage the rental you can get a property manager to handle everything and just focus on the cash flow coming in.
Do you feel that urge to do something big this year? Do you want to create wealth? Do you want to create memories with your friends and family?
It's your new year. What are you going to do?
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